Crowley Corporation is considering three investment projects: F, G, and H. Project F would require an investment of $21,000, Project G of $49,000, and Project H of $82,000. No other cash outflows would be involved. The present value of the cash inflows would be $21,210 for Project F, $57,820 for Project G, and $95,120 for Project H. Rank the projects according to the profitability index, from most profitable to least profitable.
A)F, H, G
B)G, H, F
C)H, F, G
D)H, G, F

Question

Quizplus · Accepted Answer

The Answer of Crowley Corporation is considering three investment projects: F, G, and H. Project F would require an investment of $21,000, Project G of $49,000, and Project H of $82,000. No other cash outflows would be involved. The present value of the cash inflows would be $21,210 for Project F, $57,820 for Project G, and $95,120 for Project H. Rank the projects according to the profitability index, from most profitable to least profitable.
A)F, H, G
B)G, H, F
C)H, F, G
D)H, G, F

Crowley Corporation Is Considering Three Investment Projects: F, G, and H